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Supreme Court of India

ORISSA ELECTRICITY REGULATORY COMMISSIONversusL.I. PARIJA AND ORS.

Citation
2006 INSC 26
Decided
16 January 2006
Disposal
Appeal(s) allowed

Holding

Interim orders restraining the ERC from fixing tariffs are indefensible and the writ petitions become infructuous once the ERC has exercised its statutory power.

Summary

The Orissa High Court had issued interim orders restraining the Orissa Electricity Regulatory Commission (ERC) from fixing tariffs for 2002-03 and 2003-04, later modifying the orders to permit the ERC to act but keeping the writ petitions pending for monitoring. The ERC proceeded to fix the tariffs and levies were being collected. The Supreme Court held that such interim restraining orders were indefensible once the Commission was allowed to decide and had acted, rendering the writ petitions infructuous. Consequently, the Court directed the High Court to treat the petitions as moot and quashed the contempt notice issued by the High Court. The appeals were allowed and the matter was disposed of.

Issues considered

  • The validity of interim orders restraining a statutory regulatory commission from exercising its functions under Article 226.
  • Whether such restraining orders become indefensible after the commission proceeds to fix tariffs and levy.
  • Whether the pending writ petitions should be treated as infructuous.
  • Whether contempt proceedings arising from the High Court's order should stand.

Legislation cited

Subjects

Article 226interim ordersregulatory commissiontariff fixationwrit petitioncontemptOrissa Electricity Regulatory CommissionOrissa Electricity Reforms ActinfructuousHigh Court

Judgment

A              ORISSA ELECTRICITY REGULATORY COMMISSION
                                          V.

                               L.I. PARIJA AND ORS.

                                JANUARY 16, 2006

B                   [ARIJIT PASA VAT AND S.H. KAPADIA, JJ.]



          Constitution of India, 1950: Article 226-lnterim orders by High Court
    in writ petitions restraining the Commission from fixinf, tariff-Later. order
                                                                                    •
c   recalled but mailers kept pending-Held, restraint orders are indefensible-
    Besides, meanwhile Commission having fixed the tariff and levies having been
    made. there was no necessity to keep the writ petitions pendinf, which have
    become infructuous-lnterim orders--Orissa Electricizv Reforms Act, 199-1.

          The present appeals were filed against the interim orders passed by
D   the High Court restraining the appellant from proceeding to fix tariff for
    the years 2002-03 and 2003-04. Meanwhile, the High Court though recalled
                                                                                          ..
                                                                                    ~
    the earlier orders but kept the writ petitions pending for purpose of
    monitoring the action of the appellant.

            Allowing the appeals, the Court
E
          HELD: The interim orders passed by the High Court restraining the
    Commission from exercising its functions are indefensible. After the High
    Court had permitted the Commission to take necessary decision, the
    Commission, in fact, took decision and fixed the tariff for the relevant
    periods; and levy is being made accordingly. Correctness of the tariff fixed
F   can be questioned before the prescribed forum, as provided in the Orissa
    Electricity Reforms Act, 1994. That being so, there was no necessity for
    the High Court to keep the writ petitions pending. Nothing further needs
    to be done in these appeals except directing the High Court to treat the
    writ petitions as having become infructuous. 1421-F-H; 422-AI
G
            CIVIL APPELLATE JURISDICTION: Civil Appeal Nos. 519-524 of
    2006.
                                                                                    ...
            From the Judgment and Orders dated 3.2.2003 of the Orissa High Court
                                         420
H
                  ORISSA ELECTRICITY REGULA TORY COMMISSION v. LL PARIJA \PASA YAT,J I    421

    '~
             in Misc. Case Nos. 7410 and 8953 of2002, dated 7.3.2003 in Misc. Case No.          A
             414 of2003 and dated 14.3.2003 in O.J.C. No. 6751 of2001 and Misc. Case
             Nos. 414 and 580 of 2003.

                   Mr. Raj Kumar Mehta for the Appellants.

                  Janaranjan Das, Swetaketu Mishra, R.K. Talwar, .\mil Talwar, Yash
                                                                                                B
             Pal Dhingra and Ms. N. Annapoorani for the Respondents.

)                  The Judgment of the Court was delivered by
         ¥
                   ARIJIT PASA YAT, J. Heard learned counsel for the parties.                    c
                   Leave granted.

                   The appeals were essentially directed against the interim orders passed
             by the Orissa High Court directing, in offence, restraining the Orissa Electricity
    ..       Regulatory Commission (in short 'the Commission') - appellant herein from D
             taking steps in the matter of fixation of tariff for the periods 2002-03 and
         \
             2003-04. During the course of hearing, learned counsel for the appellant
             placed before us an order dated 02.09.2003 in Misc. Case Nos. 1380 and
             1805 of 2003 by which the earlier orders were modified and the Commission
             was permitted to decide on the question of fixation of tariff for the aforesaid E
             two periods. The writ petitioners before the High Court, who are respondent
             Nos. 2 to 13 in these appeals have not appeared inspite of service of notice.
             From the order dated 02.09.2003, it is clear that the High Court virtually
             recalled the order of restraint on the exercise of power of the Commission.
         ~   But at the same time, the High Court has kept the matters pending for the
                                                                                                   F
             purpose of monitoring the action of the Commission. We find these prders
             to be rather strange. The interim orders passed by the High Court restraining
             the Commission from exercising its functions are indefensible. After the
             High Court had permitted the Commission to take necessary decision, the
             Commission has. in fact. taken decision and has fixed the tariff for the two
             periods. It is also not disputed that levy is being made on the ba~is of tariff G
             so fixed. It is not in dispute that correctness of the tariff fixed can be questioned
             before the prescribed forum. as provided in the Orissa Electricity Reform.
             Act. 1994. That being so. there was no necessity for the High Court to keep
     -{
             the writ petitions pending. As the Commission has already taken decisions,
             the tariffs have been fixed and levys are being made, nothing further needs H
    422                    SUPRl'ME COl'RT RFPORTS                 J2006] I S.C.R.

A to be done in these appeals except directing the High Court to treat the Writ
    Petition as having become infructuous. The appeals are accordingly disposed
    of. In view of this order, the notice of contempt issued by the High Court and
    the contempt proceedings stand quashed.

    R.P.                                                        Appeals allowed.


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